The S&P 500 (^GSPC +1.65%) rose 1.65% to 7,554.29 as oil slid on U.S.–Iran peace hopes, the Nasdaq Composite (^IXIC +3.07%) jumped 3.07% to 26,683.94 on an AI‑led tech surge. The Dow Jones Industrial Average (^DJI +0.92%) gained 0.92% to 51,671.03, a record close.
Market movers
Nvidia climbed as investors absorbed a heavily oversubscribed bond deal and fresh buyback plans. Meta Platforms, Micron Technology, and Western Digital rallied sharply on renewed enthusiasm for artificial intelligence (AI), semiconductors, and data‑center spending. SpaceX surged almost 20%, dramatically extending its gains following Friday’s IPO.
What this means for investors
Risk sentiment returned to markets as Wall Street responded to the signing of a memorandum of understanding between the U.S. and Iran. Gold and Bitcoin gained. Most sectors in the S&P 500 were in the green today, with industrials and technology leading the way.
Oil fell, pressuring energy stocks and boosting transports and other fuel‑sensitive cyclicals. Falling energy prices will go some way to easing inflation fears, making a rate hike less likely. Tomorrow, new Federal Reserve Chair Kevin Warsh will lead his first meeting, and softer oil prices pave the way for a more patient approach.
It isn’t clear how long it will take for the Strait of Hormuz to reopen and oil prices to normalize. There may be further volatility, but with the end of the conflict in sight, many analysts predict a strong end of year as investors return their focus to fundamentals and earnings.
Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Micron Technology, Nvidia, and Western Digital. The Motley Fool has a disclosure policy.
